The Kerala State Civil Supplies Corporation (Supplyco) has reduced the price of its Sabari brand subsidised coconut oil to ₹229 per litre from ₹249 across its outlets. According to reports from The Hindu BusinessLine, the price reduction follows a ministerial decision and applies to a combination pack comprising subsidised and non-subsidised portions. The 500-ml subsidised portion price has been reduced from ₹140 to ₹110, with consumers required to produce a valid ration card to purchase the subsidised stock. As per The Hindu BusinessLine, the oil is sold as a one-litre pack comprising 500 ml of subsidised coconut oil and 500 ml of non-subsidised oil, with the total price reduction amounting to ₹20 per litre.
The Cochin Oil Merchants Association (COMA) indicated that the price reduction is unlikely to cause significant concern among traders, as Supplyco traditionally reduces prices during festival seasons. As reported by The Hindu BusinessLine, the move could impact domestic coconut oil consumption, given that retail prices are currently ruling around ₹300 a litre. K.K. Devraj, a consultant to the coconut oil industry, described Supplyco's decision as a welcome move that will bring relief to households, noting that the intervention would help arrest the upward trend in prices. According to The Hindu BusinessLine, the decision comes as subsidised products for two months, including September's allocation, are currently available at Supplyco outlets.
The coconut oil market is currently steady, with wholesale prices ruling at around ₹280 a litre. According to Thalath Mahmood, president of COMA, as reported by The Hindu BusinessLine, prices are expected to remain stable even after Onam, supported by increased availability of copra. Despite Kerala witnessing a good coconut harvest this season, traders from other states had allegedly resorted to hoarding, creating an artificial price rise during Onam and pushing retail prices above ₹300 a litre.
The intervention could put Kerala's coconut oil millers under pressure as they are holding copra purchased at higher prices, which would make their products costlier in the retail market. As reported by The Hindu BusinessLine, Devraj warned that the Government should step up measures to curb the sale of spurious coconut oil, cautioning that vested interests could attempt to undercut Supplyco's prices by selling adulterated products. The move aims to cater to increased demand during the Onam season while providing household expense relief.
